Question

Herbert Fancypants, a popular professional golfer, has become known for the knickers (not underwear; Google/Bing it) he wears in each golf tournament. This attire has become his trademark; however, he has no trademark protection under any applicable law. Nor is there any requirement under golfing rules that the wear anything other than "appropriate attire suitable to the professor"

Are the purchase and cleaning costs of the knickers deductible to Mr. Fancypants? Please cite all resources in your research to support your conclusion.

Answer 1

Answer:-

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Facts:

Herbert Fancypants, a popular professional British golfer, has become known for the knickers he wears in each golf tournament. This attire has become his trademark, however he has no trademark protection under any applicable law. Nor is there any requirement under golfing rules that he wear anything other than appropriate attire suitable to the profession.

Issues:

IRC §162 allows a deduction for all the ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business. Is the cost and maintenance expenses of the golfers attire deductible?

Conclusion and Reasoning:

They will likely vary in their conclusions, some holding that the costs are deductible and others holding they are not deductible. Rev. Rul 70-474, 1970-2 CB 34 held that the cost of acquisition and maintenance of uniforms is deductible if the uniform is specifically required by employment and not suitable for general and personal use. In the case of Mella, Cecil, 52 TCM 1216 (1986), the cost of tennis clothes and shoes worn by a tennis player at his employment as the head tennis pro at two private tennis clubs was disallowed because the clothes were also suitable for general and personal wear. They may also locate a more recent case [Barnes, Thomas,64 TCM 1552 (1992), affd on other issues 21 F3d 1111 (CA9, 1994)], which also held that the cost of maintaining clothing suitable for everyday wear are nondeductible. The key fact that they may use to argue the expenses are deductible is the nature of the clothing - knickers. Are knickers suitable for everyday wear? If they conclude they are, they must then conclude the expenses are not deductible. If they conclude kickers are not suitable for everyday wear, they may conclude the expenses are deductible.